Cerebras Methods, a maker of synthetic intelligence chips, priced its IPO at $185 a share on Wednesday, above the anticipated vary, in line with an individual with information of the matter. The deal comes as traders gear up for what’s anticipated to be a really busy yr for brand spanking new AI choices.
The IPO reeled in at the very least $5.55 billion for Cerebras, which is hitting the market throughout a silicon renaissance. Intel, Superior Micro Units and reminiscence maker Micron are every up greater than 80% previously month, and have notched far more dramatic beneficial properties over the past yr as traders unfold their chip bets from Nvidia to the broader universe of semiconductor corporations now benefiting from
It is also one of many largest tech IPOs in years. Uber raised about $8 billion in 2019, and the largest since then for a U.S. tech firm was Snowflake’s providing in 2020, which introduced in over $3.8 billion. Increasing to incorporate autos, electrical automobile maker Rivian raised roughly $12 billion in 2021.
On the IPO worth, Cerebras is now value $56.4 billion on a completely diluted foundation. Andrew Feldman, Cerebras’ co-founder and CEO, now holds a stake value about $1.9 billion.
Based in 2016 and headquartered in Silicon Valley, Cerebras has confronted a rocky street attending to the Nasdaq, the place it’ll commerce underneath ticker image CBRS.
In September 2024 Cerebras filed to go public, however withdrew its submission just a little over a yr later after its prospectus was closely scrutinized due largely to the corporate’s heavy reliance on a single buyer within the United Arab Emirates, Microsoft-backed G42.
Cerebras had began shifting its focus away from promoting {hardware} techniques and extra towards offering a cloud service primarily based on its chips. Which means it is going up towards cloud suppliers similar to Google and Microsoft, that are each listed as opponents, together with Oracle and CoreWeave.
In its refreshed prospectus, Cerebras stated that 24% of income final yr got here from G42, down from 85% in 2024. Nonetheless, final yr Mohamed bin Zayed College of Synthetic Intelligence within the UAE accounted for 62% of income.
Cerebras scored a giant win in January, when it signed a cope with OpenAI value over $20 billion for 750 megawatts in Cerebras computing capability. Cerebras claims its Wafer Scale Engine 3 chips supply pace and worth benefits over graphics processing models, similar to Nvidia’s.
On Might 4, Cerebras stated it was seeking to promote 28 million shares at $115 to $125 per share. Every week later, Cerebras bumped up the providing to 30 million and raised the anticipated vary to $150 to $160.
Earlier on Wednesday, Bloomberg reported, citing unnamed sources, that weeks earlier than Cerebras’ IPO, Arm and SoftBank each tried to amass it. Cerebras declined to remark.
In 2017, OpenAI checked out merging with Cerebras, viewing the chip firm as probably useful within the pursuit of synthetic common intelligence, or AGI, in line with testimony in Elon Musk’s trial towards OpenAI.
“Unique entry to Cerebras {hardware} would give OpenAI an amazing {hardware} benefit over Google,” Greg Brockman, OpenAI’s co-founder and president, wrote in an electronic mail. Brockman held about 78,000 shares of Cerebras on the finish of 2025, in line with a submitting within the case, which might be value $14.4 million on the IPO worth.
Different Cerebras traders embrace Constancy, with a stake valued at about $3.8 billion, and Benchmark, which owns roughly $3.3 billion value of shares. Basis Capital’s holdings are valued at $2.8 billion, and Eclipse owns a $2.5 billion stake.
—CNBC’s Kristina Partsinevelos contributed to this report.
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